Exxon: Climate Regulations Don’t Threaten the Value of its Reserves

WALL STREET JOURNAL
By DANIEL GILBERT
March 31, 2014 7:18 p.m. ET

Exxon Mobil Corp. XOM -0.02% says future regulations to protect the climate don’t threaten the value of its oil and gas reserves, arguing that economies will need the fuels too much to embrace drastic cuts in greenhouse-gas emissions.

In response to shareholder pressure, the U.S.’s biggest energy company, published two reports Monday affirming that climate change poses a risk to society. But Exxon pushed back against investor concerns that potential restrictions on burning fossil fuels will make it too expensive for Exxon to pump its oil and gas, calling such a scenario “highly unlikely.”

“We are confident that none of our hydrocarbon reserves are now or will become ’stranded,’” Exxon said in one report published on its website, responding to a request from several sustainability-focused groups representing shareholders.